Giant publisher of video game titles, Electronic Arts has again pulled back its outlook for the 2010 financial year, mainly on the back of weaker-than-expected sales over the holiday period in Europe and a shift-over to its lower-margin distribution units.

EA, whose popular games include Madden NFL and Need for Speed, has shared that the industry-packaged software sales across Europe declined by a whopping 15% in some countries. Yet, the company has stressed that it had managed to generate about $75 Million more than targeted in revenue from games that it had distributed, but did not own, for example, Left 4 Dead 2 and The Beatles: Rock Band.

On these distribution sales, however, the company earns narrower margins.

On the back of rapidly falling sales countrywide, EA had faced a tough 2009 and axed many jobs.

"What we’ve described as a two-year comeback is clearly taking longer", said John Riccitiello, the company’s Chief Executive.

On Monday, EA shared its new forecast, according to which, the company now hopes to earn 40-55 cents a share, on the revenue of $4.13 Billion to $4.2 Billion, for a year up-to March 31, 2010. This is a substantial fall from the earlier forecast of earnings of 70 cents - $1 a share, on the revenue of $4.2 Billion to $4.4 Billion.